Automotive market will cool as credit brake is applied<\/p>\n
By Mitchell Mackey<\/p>\n
After a year of a strong 15 percent growth, the Indonesian
\nautomotive market is set for a period of consolidation, according
\nto Herman Latif, chairman of the Association of Indonesian
\nAutomotive Industries.<\/p>\n
Herman said the government's tight monetary policy, which is
\ndesigned to slow the growth of consumer credit, would have an
\nimpact on buyers confidence and apply a brake to the market.<\/p>\n
The year 1995 was the fourth successive year in which the
\nautomotive market recorded a big sales increase, with sales
\njumping from 326,471 vehicles in 1994, to 384,449 in 1995.<\/p>\n
However, the market could dip slightly in 1996.<\/p>\n
\"The market will be between 380,000 vehicles and 400,000
\nvehicles. To be more certain, I would like to wait until after
\nthe first semester results,\" Herman said.<\/p>\n
\"This year's sales will be affected by the tight monetary
\npolicy and the general election in 1997.<\/p>\n
\"Businesspeople will not be too aggressive.<\/p>\n
\"If we can sell the same amount of cars as last year it will
\nbe good enough,\" Herman said.<\/p>\n
Herman, who is also vice president of Krama Yudha Group, which
\nassembles and distributes Mitsubishi vehicles, said a major
\nconcern was the market's passenger car sector.<\/p>\n
Passenger car sales dropped in 1995; down 2,491 vehicles from
\n40,412 in 1994.<\/p>\n
\"Passenger car sales are a tightly contested sector with
\nnumerous competitors fighting for a small segment,\" Herman said.
\n\"It is not just a problem for the newcomers, such as Daewoo and
\nHyundai.\"<\/p>\n
Opel's director of sales and marketing, Terence Johnsson, said
\nit was difficult to predict the market's direction.<\/p>\n
\"Indonesia is the only market in the world dominated by
\nrecreational vehicles with an emerging passenger car segment,\"
\nJohnsson said. \"Opel will maintain flexibility and short life
\ncycles for its vehicles to adapt to market changes,\" he said.<\/p>\n
Opel had a stable 1995, with its passenger cars sales going
\nwell.<\/p>\n
Overall, the market produced more winners than losers.<\/p>\n
Of the volume players, Mitsubishi, Toyota, Daihatsu, Suzuki
\nand Isuzu scored big gains, especially with their commercial
\nvehicles.<\/p>\n
Nissan, Mercedes Benz and BMW also recorded good results, but
\nof much lower bases.<\/p>\n
Hard hit by the strong Yen, Honda suffered a big slump, with
\nits sales falling from 8,346 vehicles in 1994, to 4,870 vehicles
\nin 1995. Mazda was also affected, with its numbers dropping from
\n4,305 vehicles to 3,026 vehicles.<\/p>\n
Total motor vehicle sales:<\/p>\n
1992 1993 1994 1995 1996
\n ---------------------------------------------------
\n 171,899 214,298 326,471 384,449 400,000 (estimated)<\/p>\n
Vehicle sales by brand<\/p>\n
1994 1995
\n BMW 2,898 3,151
\n Daihatsu 60,856 63,243
\n Ford 3,197 2,880
\n Opel 1,322 1,228
\n Honda 8,346 4,870
\n Isuzu 32,111 42,966
\n Mazda 4,305 3,026
\n Mercedes Benz 4,864 7,575
\n Mitsubishi 59,336 73,709
\n Nissan 1,146 1,752
\n Suzuki 56,723 71,004
\n Toyota 80,608 97,912
\n Others 10,759 11,133<\/p>\n
Source: Association of Indonesian Automotive Industries
\n(Gaikindo)<\/p>",
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